Join us as we delve into the fascinating journey of Acumen Growth Catalyst Billy Hodes, who transformed Midland Industries from a distressed company to a platform of success. In this episode, we explore the stages of revenue growth from $5 to $150 million, discussing key strategies, challenges, and insights on scaling a business. Billy shares valuable experiences from his role as a CEO, his partnership with private equity, and the importance of cultivating a strong company culture.
0:00–1:00
Host Dan Cooper introduces the podcast and guest Billy Hodes, former CEO and CMO of Midland Industries.
Episode topic: Scaling revenue from $5M to $150M.
Billy is now a Growth Catalyst at Acumen in Kansas City.
1:00–2:30
Billy shares his background: began in 2002 by purchasing a distressed company.
Operated independently for 12 years before merging in 2015.
Eventually partnered with private equity, built a platform, rolled up 7 businesses, and exited in 2023.
2:30–5:15
Describes initial acquisition: company was financially struggling and close to liquidation.
Modeled it as a two-year turnaround.
Got it to profitability by reinvesting in people, product lines, and customers.
5:15–7:00
Flywheel began turning around 2006–2007.
Mentions importance of a peer advisory group in early stages.
Emphasizes hiring people smarter than himself and empowering them.
7:00–11:00
Culture as the differentiator: joy in work, mutual respect, fun.
Introduced a transparent bonus program in 2015 (led by his brother Vince):
Employees understood the company’s break-even and contributed to profits.
About 50% of income came from this performance-based bonus.
Encouraged thinking like owners and maximizing efficiency.
11:00–13:00
Bonus program helped retain talent and navigate crises (e.g., 2008 recession, COVID) without layoffs.
13:00–15:00
Reflections on the first growth phase: what worked early on didn’t necessarily work for the next phase.
Recognizes the need for earlier adoption of technology and team expansion.
15:00–17:00
2015 merger: his $10M company merged with a $40M one (run by his brother).
Complementary skills, similar products, different markets.
A “test run” for future acquisitions.
17:00–18:30
Initially declined private equity in 2017.
After PE firm bought a competitor, they returned and partnered with Midland in 2018.
Sold majority ownership but kept leadership intact.
18:30–21:00
Used PE capital to roll up 7 companies over 4 years.
Offered succession plans and value to acquisition targets.
Emphasizes trust, execution by empowered teams, and shared outcomes.
21:00–23:00
Discusses pros and cons of family businesses.
His experience: success due to shared values, trust, and alignment.
Avoided common pitfalls through intentional culture and strong leadership.
23:00–25:00
Faith and leadership: rooted in Jesuit values—“serve God by serving others.”
Work ethic and mission-oriented mindset key to personal and professional success.
25:00–27:00
LinkedIn is the best place to connect with Billy (not billyhodes.com—that’s his artist son).
Also on acumenimpact.com.
27:00–30:00
Final takeaways by Dan:
Entrepreneurial mindset can turn a 4/10 business into a success.
Open-book management and shared incentives are powerful.
Culture that invites others creates long-term retention.
Billy’s advice: Don’t go it alone—surround yourself with a trusted, supportive community.